Company Number: 13815379

Analysis Date: 2025-07-29 15:31 UTC

Financial Health Assessment for Grayston And Wright Limited

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1. Financial Health Score: B (Good Health with Positive Trends)

Grayston And Wright Limited demonstrates solid financial health typical of a growing micro-entity in the development of building projects sector. The company maintains positive net assets, healthy working capital, and shows increasing equity over recent years. Minor caution arises from a slight reduction in net current assets and the presence of some long-term liabilities, but overall the financial "vital signs" suggest stable and improving conditions.

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2. Key Vital Signs: Critical Metrics & Interpretation

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	42,157	14,450	Increased investment in long-term assets signals growth and capital expenditure.
Current Assets	193,299	192,532	Stable liquid assets, indicating consistent short-term resource availability.
Current Liabilities	142,861	125,859	Slight increase, reflecting short-term obligations growth; manageable given assets.
Net Current Assets (Working Capital)	53,708	68,658	Positive but slightly reduced working capital; still sufficient buffer for day-to-day expenses.
Non-current Liabilities	11,800	3,083	Increased long-term debts or obligations; worth monitoring but not alarming.
Net Assets (Shareholders’ Funds)	83,065	79,025	Steady equity growth, indicating retained profits or capital injection.
Average Number of Employees	4	4	Stable workforce; suggests operational consistency.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Healthy Cash Flow and Liquidity: The company maintains a positive working capital position, indicating it has more current assets than current liabilities. This "healthy cash flow" symptom suggests the business can cover its short-term debts and operational costs without distress.

• Growth Investment: The nearly threefold increase in fixed assets from £14,450 to £42,157 suggests the company is investing in property, plant, or equipment, which is a positive sign of expansion and commitment to long-term operational capacity.

• Equity Strengthening: The rise in net assets from £54,101 in 2021 to £83,065 in 2024 reflects accumulated profits or capital contributions, strengthening the financial base and providing a cushion against future risks.

• Increased Liabilities: The increase in current and long-term liabilities should be interpreted as a symptom of growing financial obligations. While currently manageable, these should be monitored to avoid future liquidity strain.

• Stable Workforce: Maintaining the same employee base suggests operational stability without overstretching resources.

• Micro-Entity Reporting: The accounts are prepared under micro-entity provisions, implying simplicity and limited complexity in operations, suitable for the company size.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Monitor Working Capital Closely: The slight decline in net current assets warrants regular review to ensure liquidity remains sufficient, especially if liabilities continue to increase.

• Manage Debt Prudently: The rise in long-term liabilities suggests expanding debt or obligations. The company should ensure these borrowings are aligned with income streams and capital investment returns to avoid over-leverage.

• Enhance Cash Flow Forecasting: Implement or strengthen cash flow forecasting to anticipate periods of tight liquidity and plan accordingly, preventing symptoms of financial distress.

• Capitalize on Asset Investments: Ensure that the increased fixed assets contribute effectively to revenue generation, justifying the capital outlay and improving profitability.

• Maintain Compliance and Reporting: Continue timely filing of accounts and confirmation statements to avoid penalties and demonstrate good governance.

• Explore Growth Opportunities Carefully: With a stable financial base, the company can cautiously explore new projects or markets but should avoid overextending financially.

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